Mortgage Charges Right this moment, July 10, & Price Forecast For Subsequent Week
Today’s mortgage and refinancing rates
Average mortgage rates rose just inches yesterday. But that was the first increase this week. And they are significantly lower than last Friday.
So my prediction of “barely moving” prices was wrong last week. And I have to say that now Mortgage rates next week are unpredictable. I should mention, however, that increases are common when periods of noticeable declines run out. But they are not inevitable.
Find and lock a cheap rate (July 11, 2021)
Current mortgage and refinancing rates
|program||Mortgage rates||Effective interest rate*||change|
|Conventionally fixed for 30 years||2,811%||2,811%||Unchanged|
|Conventionally fixed for 15 years||2.125%||2.125%||Unchanged|
|Conventional 20 years old||2,625%||2,625%||+ 0.13%|
|Conventionally 10 years fixed year||1,944%||1,984%||+ 0.01%|
|30 years permanent FHA||2,672%||3,326%||+ 0.06%|
|15 years fixed FTA||2,365%||2,965%||-0.07%|
|5/1 ARM FHA||2.5%||3,207%||Unchanged|
|30 years of permanent VA||2,258%||2,429%||+ 0.01%|
|15 years fixed VA||2.25%||2,571%||Unchanged|
|Prices are provided by our partner network and may not reflect the market. Your price can be different. Click here for an individual price offer. View our rate assumptions here.|
Find and lock a cheap rate (July 11, 2021)
COVID-19 mortgage updates: Mortgage lenders are changing rates and rules due to COVID-19. To learn how the coronavirus could affect your home loan, click here.
Should You Lock A Mortgage Rate Today?
After a good few weeks on mortgage rates, you may feel relaxed. But don’t get too comfortable. The chances that they will fall much further seem slim to me. While an upward recovery is more likely.
However, the markets have been acting strange lately. So it is entirely possible that you could benefit from fluctuating your interest rate further. Just don’t complain if you get caught on climbs. And be ready to lock anytime.
If I were you I would be careful and lock up now. My personal recommendations therefore remain:
- LOCK when close in 7th Days
- LOCK when close in fifteen Days
- LOCK when close in 30th Days
- LOCK when close in 45 Days
- LOCK when close in 60 Days
With so much uncertainty right now, however, your instincts could turn out to be as good as mine – or better. So let yourself be guided by your gut instinct and your personal willingness to take risks.
What is moving the current mortgage rates
Well, that was a strange week. Panic suddenly struck the markets on Wednesday and Thursday. It suddenly dawned on them that the global COVID-19 pandemic was far from over. Perhaps they had a false sense of security beforehand as most of the participants were probably already double vaccinated.
There had been some economic and medical data that may have sparked their fears. But I haven’t seen any that warrant such a sharp reaction. It felt more like a rush. For example, when a single horse mistakes a branch for a rattle and everyone else runs away.
Of course, that doesn’t mean that there aren’t any real economic dangers from the pandemic. There are. But they have been around for – and have hardly changed – many months.
Of course, if COVID-19 gets its ugly head back and undermines the recovery in the US and the global economy, mortgage rates would likely drop significantly, potentially reaching new all-time lows. And the stock markets would collapse in a similar way.
Investors would argue that they priced in such an opportunity when they traded on Wednesday and Thursday. But why they chose these days is unclear. One theory is that they suddenly realized that recovery from COVID-19 might be evening.
And it may be that most of the stimulus checks have now been issued. But new infrastructure spending is in the pipeline. And the latest data, with the exception of the employment numbers, has been pretty good.
Fed is still the major threat to mortgage rates
While the markets were getting out of their (hopefully) branch, they were too busy to accommodate some key Federal Reserve developments. On Wednesday, the Fed released the latest minutes from its main policy committee. And they showed that it was beginning to move to a point where it could gradually slow (“shorten”) its asset purchases.
This was confirmed yesterday in an interview in the Financial Times in which Federal Reserve Bank of San Francisco President Mary Daly said, “We are ready to put the throttling in place when the time is appropriate.”
The problem is, these security purchases include $ 40 billion a month spent on mortgage-backed securities. And this Spree keeps mortgage rates artificially low.
Worse, if what happened in the last Fed announcement (in 2013) repeats itself, we could see mortgage rates averaging around 3.5% very soon after such an announcement. At the moment they are in the range of 2.9% to 3%
Economic reports next week
Next week is a tough week for major economic reports, all of which apply to June unless otherwise noted. Inflation is one of the major obsessions in the markets right now. And the index of consumer prices (CPI) will be released on Tuesday, including the core CPI, which is the CPI that leaves out volatile food and energy prices. The producer price index is published on Wednesday and the import price index on Thursday.
Thursday also brings industrial production and retail sales on Friday. And these could help the markets decide whether they were startled by a twig or a rattlesnake.
None of the other economic reports listed below are likely to cause much movement in the markets unless they include shockingly good or bad data. Additionally, regular readers know that investors have ignored most of the economic reports in the past few months. Therefore, the effects of the following may differ from the usual ones:
- Tuesday-June consumer price index and core CPI
- Wednesday – June Producer Price Index
- Thursday – June import price index. And June industrial production with capacity utilization. Plus weekly new unemployment insurance claims until July 10th
- Friday – June retail sales and retail sales excluding cars. Plus July consumer sentiment index
After Monday, there is something potentially important every day of the next week.
Find and lock a cheap rate (July 11, 2021)
Mortgage rates forecast for next week
I’m back to my old cop out that Mortgage rates are essentially unpredictable next week. If you forced me to place a bet I would put a dime on it to rise modestly. But, to be honest, I wouldn’t be much of a surprise after last week.
Mortgage and refinancing rates usually move in parallel. Note, however, that the refinancing rates are currently slightly higher than those for buying mortgages. This gap will likely stay pretty constant as it changes.
Meanwhile, a recent regulatory change has made most investment property and vacation home mortgages more expensive.
This is how your mortgage rate is determined
Mortgage and refinance rates are generally determined by prices on a secondary market (similar to the stock or bond markets) that trade mortgage-backed securities.
And that depends heavily on the economy. So mortgage rates are typically high when things are going well and low when the economy is in trouble.
But you play huge roles in determining your own mortgage rate in five ways. You can significantly influence it by:
- Find your best mortgage rate – they vary widely from lender to lender
- Boost Your Credit Score – Even a small increase can make a big difference to your rate and payments
- Save the Biggest Down Payment possible – lenders like you to have real skin in this game
- Keep Your Other Borrowings Modest – The lower your other monthly obligations, the higher the mortgage you can afford
- Choose Your Mortgage Carefully – Are You Better Off With a Conventional, FHA, VA, USDA, Jumbo, or Other Loan?
The time you spend getting these ducks in a row can result in you winning lower prizes.
Remember, it’s not just a mortgage rate
Make sure to count all of the upcoming home costs when figuring out how much a mortgage you can afford. So concentrate on your “PITI” This is yours P.rincipal (pays back the amount borrowed), IInterest (the price of borrowing), (property) TAxles and (homeowners) IInsurance. Our mortgage calculator will help you with this.
Depending on your type of mortgage and the amount of your down payment, you may also need to pay for mortgage insurance. And that can easily reach three digits every month.
But there are other potential costs as well. So you have to pay community contributions if you choose to live with an HOA. And wherever you live, you have to expect repair and maintenance costs. There is no landlord to call if something goes wrong!
Eventually, you will find it hard to forget about closing costs. You can see this in the specified annual percentage rate (APR). Because this effectively spreads it out over the life of your loan and makes it higher than your pure mortgage rate.
However, you may be able to get help with these closing costs and your down payment, especially if you are a first-time buyer. Read:
Down payment assistance programs in each state for 2021
Mortgage rate methodology
The mortgage report receives interest rates from several credit partners on a daily basis according to selected criteria. We’ll find an average interest rate and an APR for each type of loan shown on our chart. By averaging a number of rates, this will give you a better idea of what you might find in the market. In addition, we determine average interest rates for the same types of credit. For example FHA fixed with FHA fixed. The end result is a good snapshot of the daily rates and how they change over time.